minutes

Regular Meeting

Governing Board of Sweetwater Authority

January 9, 2008

The Governing Board of Sweetwater Authority held a regular meeting on Wednesday, January 9, 2008, at the Sweetwater Authority Administrative Office, 505 Garrett Avenue, Chula Vista, California. Chair Beauchamp called the meeting to order at 6:01 p.m.

• ROLL CALL

Directors Present: Alkire, Beauchamp, Doud, Morrison, Pocklington, Thomas, Welsh

Directors Absent: None

Others Present: General Manager Bostad, Operations Manager Rogers, Legal Counsel De Sousa, Treasurer Farrow, and Board Secretary Schoonderwoerd. Staff members: Rick Alexander, Bill Olson, George Silva, Jim Smyth, Don Thomson, Tom Woodrum, and Dina Yorba

• PLEDGE OF ALLEGIANCE TO THE FLAG
Director Welsh conducted the pledge of allegiance to the flag.

• OPPORTUNITY FOR PUBLIC COMMENT (Government Code Section (54954.3)
There were no members of the public present.

• CHAIR’S PRESENTATION
There was none.

ACTION CALENDAR ITEMS

1. ITEMS TO BE ADDED, WITHDRAWN, OR REORDERED IN THE AGENDA
There were none.

2. APPROVAL OF MINUTES

Director Doud made a motion, seconded by Director Alkire, that the Governing Board approve the minutes of the December 12, 2007 meeting, with an amendment requested by Director Thomas to reflect the presence of Mr. Ted Godshalk at the meeting. The motion carried with Director Pocklington abstaining due to his absence from the meeting.

3. APPROVAL OF DEMANDS AND WARRANTS

Director Doud made a motion, seconded by Director Thomas, that the Governing Board approve Warrants 112554 through 112855 including all voided checks. Director Thomas requested explanations on five warrants, which were clarified by staff. The motion carried.

4. OPERATIONS COMMITTEE (Meeting of January 2, 2008)

A. Request to approve a new access point to the Sweetwater Reservoir Riding and Hiking Trail. Director Pocklington explained that the County is requesting this new access due to the construction of SR 125. Prior to finalizing its decision, the Committee will view the trail at the site and review the statistics related to the number and types of users of this trail, as well as any effects on risk assessment. General Manager Bostad stated that an update on The Pointe project would be provided at a future meeting. This was an information item and no action was required by the Governing Board.

B. Discussion of quagga mussels. Director Pocklington stated that further investigation is pending on samplings which came back positive, but inconclusive. Staff is working with CWA to develop a method to treat the water to eradicate the problem and will report back at a later time on the findings. This was an information item and no action was required by the Governing Board.

5. FINANCE AND PERSONNEL COMMITTEE (Meeting of January 7, 2008)

A. Director Welsh made a motion, seconded by Director Doud, that the Governing Board approve the 2008 membership renewal in the Foundation for Cross-Connection Control and Hydraulic Research and the payment of dues in the amount of $1,000. The motion carried.

B. Director Welsh made a motion, seconded by Director Thomas, that the Governing Board approve the 2008 membership renewal in the Water Education Foundation and the payment of dues in the amount of $2,757. The motion carried.

C. Director Welsh made a motion, seconded by Director Alkire, that the Governing Board approve the 2008 membership renewal in the Western Coalition of Arid States (WESTCAS) and the payment of dues in the amount of $2,250. The motion carried.

D. Director Thomas made a motion, seconded by Director Alkire, that the Governing Board approve the 2007 membership renewal in the Chula Vista Chamber of Commerce and the payment of dues in the amount of $150. The motion carried.

E. Director Welsh made a motion, seconded by Director Morrison, that the Governing Board adopt the amended Rates and Rules and Supplement to the Rates and Rules through Resolution 08-01. Director of Finance Farrow noted that the revisions were made to provide consistency throughout and between the two documents, and she clarified questions from Director Doud and Director Thomas.

Upon said motion, the following resolution:

RESOLUTION 08-01

RESOLUTION OF THE GOVERNING BOARD OF
SWEETWATER AUTHORITY ADOPTING AMENDED RATES AND RULES
AND A SUPPLEMENT TO THE RATES AND RULES

was passed and adopted by the following vote to wit:

Ayes: Directors Alkire, Beauchamp, Doud, Morrison, Thomas, and Welsh
Noes: None
Absent: None
Abstain: None

F. Director Welsh made a motion, seconded by Director Pocklington, that the Governing Board adopt the Annual Statement of Investment Policy through Resolution 08-02. Director of Finance Farrow clarified a number of questions from Director Thomas and explained that the Authority’s Annual Investment Policy is in compliance with Government Code. She pointed out that the policy will now provide for the submission of a monthly, rather than bimonthly, investment report to the Board. The motion carried.

Upon said motion, the following resolution:

RESOLUTION 08-02

RESOLUTION OF THE GOVERNING BOARD OF
SWEETWATER AUTHORITY ADOPTING AN ANNUAL
STATEMENT OF INVESTMENT POLICY

was passed and adopted by the following vote to wit:

Ayes: Directors Alkire, Beauchamp, Doud, Morrison, Thomas, and Welsh
Noes: None
Absent: None
Abstain: None

G. Closed Session. In compliance with Government Code Section 54957.6, the Committee met in closed session to discuss labor negotiations with the incoming General Manager and Operations Manager. There was no reportable action.

6. REPORT OF SWEETWATER AUTHORITY DIRECTOR TO THE WATER CONSERVATION GARDEN AUTHORITY

Director Beauchamp reported that the Garden Authority Board did not meet in January.

7. NEW BUSINESS
There was none.

8. REPORT OF THE SOUTH BAY IRRIGATION DISTRICT REPRESENTATIVE AND THE CITY OF NATIONAL CITY REPRESENTATIVE TO THE SAN DIEGO COUNTY WATER AUTHORITY

Director Pocklington reported that the CWA Board last met on December 6, 2007. All items that were passed were items Sweetwater Authority was in agreement with. The only controversial item involved JPIA insurance. Staff has recommended that a new insurance company be selected, which would save CWA $10,000 per year. This item was continued to the January 24th Board meeting following a Board workshop at which both insurance companies will be represented. He added that MWD has offered three options with regard to water rate increases. One option would increase rates by 9.8 percent; the second would increase rates by 9.8 percent, plus an additional $25 per acre-foot surcharge, which in essence makes the increase over 14 percent; and the last would put the increase at 20.2 percent. The Board discussed the various reasons for these increases.

9. APPROVAL OF DIRECTORS’ ATTENDANCE AT MEETINGS AND FUTURE AGENDA
ITEMS

A. Director Pocklington made a motion, seconded by Director Doud, that the Governing Board approve per diem for Chair Beauchamp’s attendance at the Friends of the Water Conservation Garden meeting on January 14, 2008. The motion carried.

B. Council of Water Utilities, San Diego County Meeting at StoneRidge Country Club on Tuesday, January 15, 2008 at 7:15 a.m. – Program: “Future Trends in California Water Conservation” presented by Chris Brown, Executive Director, California Urban Water Conservation Council. Directors wishing to attend this pre-approved meeting will contact the Secretary. No action was required by the Governing Board.

C. Water Agencies Association of San Diego County Quarterly Meeting at Lake San Marcos Resort on Thursday, January 17, 2008 at 6:00 p.m. – Program: “Desal Plant in Carlsbad” presented by Peter Maclaggan of Poseidon Resources. A sign-up sheet was circulated for this pre-approved meeting. No action was required by the Governing Board.

D. Water Education Foundation Lower Colorado River Tour on March 12-14, 2008. There was no interest expressed in attending this pre-approved event. No action was required by the Governing Board.

E. Director Pocklington made a motion, seconded by Director Thomas, that the Governing Board approve per diem for directors who wish to attend the Local Government Commission Annual Ahwahnee Conference for Local Elected Officials at Yosemite National Park on March 13-16, 2008. Directors wishing to attend this conference will contact the Secretary. The motion carried.

F. Director Welsh made a motion, seconded by Director Doud, that the Governing Board approve per diem for directors who wish to attend the WaterReuse Association 2008 California Section Annual Conference at the Marriott Newport Beach Hotel and Spa on March 24-26, 2008. Directors wishing to attend this conference will contact the Secretary. The motion carried.

10. REPORTS BY DIRECTORS ON EVENTS ATTENDED

Director Thomas reported on the Council of Water Utilities Meeting of December 18th. Post assessment presentations on the fire storms and impacts on their water agencies were given by Keith Lewinger (Fallbrook PUD), Tom Brammell (Ramona MWD), and Jeff Pasek (City of San Diego). Among other topics, the meeting covered the issue of toxins in the air, management during the crisis, and evacuation procedures. The need for better plans of action and equipment for the future was reinforced. She expressed pride in Authority staff who assisted Ramona MWD during the fires. Director Pocklington agreed that it was a good program with many lessons learned, including that of the cooperative spirit within the water community. Director Morrison added that the presentations were good on both the positive and negative issues.

Director Morrison attended the National City Chamber of Commerce meeting on December 19th, which was a Christmas presentation with a performance by Sweetwater High School’s Christmas choral group. Assembly Member Mary Salas also gave a presentation on state affairs.

Director Doud reported on the First Friday Meeting of January 4th, where the program was a presentation by John Ohanian, CEO of 2-1-1 San Diego. 2-1-1 is a 24-hour community, health, and disaster information line. During the recent fires, 2-1-1 was the region’s main resource for information about shelter locations, road closures, donations, volunteer opportunities and relief and recovery resources. He noted that several people gave accolades to Greg Cox for his wonderful job volunteering during the fire storms. Director Morrison added that one concern with the 2-1-1 program is that it is part of the health and human services provision, which was already funded by the County, and now the cities are being asked to help fund the program.

Chair Beauchamp attended the South County Economic Development Council on January 8th, where Tim Kelley, president and CEO of the Imperial Valley EDC gave a presentation on what is going on with their development, border issues, infrastructure, airports, water, immigration, labor, etc. He said that IID had no choice but to sign the Quantification Settlement Agreement in order not to lose their water rights.

11. BUDGET REPORT – DIRECTOR OF FINANCE FARROW
Report as of November 30, 2007

Ms. Farrow reported that November was an anomaly because water sales surpassed the budget by approximately $200,000. However, water sales were under budget the four months prior to that, which brings Water Revenue to $825,000, or 4.8 percent, under budget. Operating Expenses are $907,000, or 6.2 percent, under budget. She reported that if operating expenses continue on the same path, we should be able to absorb any losses on the revenues. This has a lot to do with the drought, conservation, and public relations with the 20-Gallon Challenge.

12. MANAGEMENT REPORT

A. Report of Operations Manager Rogers: Mr. Rogers reported that the billing for the January 1 rate increase went through very smoothly, and no complaints have been received on the proration. He thanked Ms. Farrow and the I.S. staff. The Authority received notice today from SDG&E regarding a bulb exchange event at the National City Wal-Mart on February 9th from 10:00 to 2:00 p.m. Authority staff will provide a booth at the event. He reported that rainfall totals from the last storm added 2.8 inches at Loveland Reservoir and 2.2 inches at Sweetwater Reservoir. This brings us close to the average at both locations. Because everything was so dry, the reservoirs did not get as much runoff as we would have liked. Loveland received 560 acre-feet and Sweetwater received about 630 acre-feet, for a total of 1,190 acre-feet. He added that Director of Distribution Olson has been asked to give his presentation on the Authority’s hydrant and valve maintenance program at the San Diego County Water Works Group meeting on January 16th.

B. Report of General Manager Bostad: Mr. Bostad reported that he will be giving an update on the Authority’s water supply to the Chula Vista City Council on January 15th, but it is not yet known where the presentation will be on the agenda. Director Alkire had requested that a follow-up be given regarding Mr. Maxwell, the only individual who attended the public hearing on December 12th to address the proposed rate increase. Mr. Bostad advised the Board that Ms. Farrow contacted Mr. Maxwell to set up a meeting to address his concerns. He informed Ms. Farrow that he would call back to set up an appointment, but he has not yet done so.

13. DIRECTORS’ COMMENTS

Director Doud reported that he has been appointed to ACWA’s Communication Committee representing Region 10 for the next two years. He read a quote by Elliot Norse: “In every glass of water we drink, some of the water has already passed through fish, trees, bacteria, worms in the soil, and many other organisms, including people…Living systems cleanse water and make it fit, among other things, for human consumption.”

Director Morrison commented that the National City Chamber meetings have been moved from the third Wednesday to the third Thursday of the month.

Chair Beauchamp commented that he has been asked to serve on the Spreckles Organ Society Board.

14. CLOSED SESSION

At 7:28 p.m., the Board recessed to convene in Closed Session to discuss labor negotiations regarding the incoming General Manager and Operations Manager, in compliance with Government Code Section 54957.6. All persons left the room with the exception of the Governing Board, the General Manager, and the Board Secretary. There were no minutes taken, and the session was not tape-recorded.

At 7:33 p.m., Chair Beauchamp declared the meeting to be in open session.

Director Pocklington made a motion, seconded by Director Doud, that the Governing Board authorize the Chair to execute employment agreements with the incoming General Manager and Operations Manager to become effective on May 10, 2008. The General Manager’s annual salary will be $197,120 without a bonus. The Operations Manager’s annual salary will be $177,408 without a bonus. Both salaries will be subject to a cost-of-living adjustment approved for “at-will” employees effective July 1, 2008. These and all other terms and conditions of the current General Manager and Operations Manager agreements shall remain in effect until the next negotiation period to take place in July 2009. The motion carried unanimously.

15. ADJOURNMENT

With no further business before the Board, Chair Beauchamp adjourned the meeting at 7:36 p.m.